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Cdn pennyWell, since it’s still Canada Day season, thought I should investigate how our federal tax dollars are contributing to making Canada, Canada. Le voila:

  • $0.15 – interest on the debt (pays our Canada Savings Bonds interest, for example)
  • $0.53 – given to the provinces and territories and individuals to do good stuff with. We hope.
    • $0.23 – go to individual Canadians (like Old Age Security – $0.13, and Employment Insurance – $0.06, Child Tax Benefit – $0.04)
    • $0.19 – given to provinces and territories to implement federal programs like healthcare-$0.08, education & social assistance -$0.03
  • $0.11 – grants to things like the arts, farmers, aboriginal programs, bilingualism, sports
  • $0.25 – operating costs of running the federal gov’t (eg. Nat’l Defence – $0.07, RCMP – $0.03 and our favourite, the CRA itself – $0.02)
  • $0.03 – crown corporations like CBC, CMHC and Atomic Energy (huh? who knew?)
  • $0.06 – surplus, used to reduce the federal debt.

There you have it. Note that some of the things we love to hate, social assistance and employment insurance, were only about $0.06 cents of the dollar, whereas old age security is actually the largest single item after interest on the debt.Now we know!

About the Author

Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com

Where does your tax dollar go? Comment

  1. interesting! didn’t know that old age security took up so much. i guess with people getting older and older, that would be the case (how’s everyone doing with their RRSP’s???)

    also it really shows us that we need to pay lots of attention to what’s happening in our provinces.

    thanks for the info!


    Jul 04, 2007

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